Figure 15-10
-Refer to Figure 15-10. What area measures the deadweight loss?
A)(B-
F)*K
B)0.5[(P-
O)*(L-
O)]
C)0.5[(A-
H)*(L-
J)]
D)0.5[(B-
F)*(L-

Question

Figure 15-10 
-Refer to Figure 15-10. What area measures the deadweight loss?
A)(B-
F)*K 
B)0.5[(P-
O)*(L-
O)] 
C)0.5[(A-
H)*(L-
J)] 
D)0.5[(B-
F)*(L-

Quizplus · Accepted Answer

Deadweight loss is typically represented by the area of a triangle on a supply and demand graph. In this case, the area 0.5[(B-F)*(L-K)] represents the triangle formed between the supply and demand curves, indicating the loss of economic efficiency when the market is not in equilibrium.

Figure 15-10 -Refer to Figure 15-10. What Area Measures the Deadweight Loss